Lifetime allowance
The limit on how much can go into your pension over your lifetime, known as the lifetime allowance (LTA), was effectively abolished in April 2023
This means there’s no extra tax charge, however much you have in your pension. While the LTA officially remains in force until April 2024, no one will have to pay an LTA charge for the tax year 2023-2024.
Tax-free cash
When you reach age 55 you can take up to 25% of your pension as a tax-free cash sum, as long as it is less than £268,275. Any cash that you take from your pension beyond that will be taxed. This will affect you if the value of all of your pensions combined is worth more than £1,073,100.
For more general information on the LTA, visit the MoneyHelper website
Taking Advice
Please remember, this is a personal tax issue and remains a potentially complex area. You should take independent financial advice if you are not sure of your personal position.